August 31, 2021
Social Security’s Finances Remain Strong, Annual Trustees Reports Show
The following statement was issued by Richard Fiesta, Executive Director of the Alliance for Retired Americans, regarding the Trustees reports on the Social Security and Medicare Trust Funds released today:
“Social Security remains strong and solvent with enough money to cover all payouts and expenses until 2034, while the Medicare Part A Trust Fund for hospital care now has sufficient funds to cover its obligations until 2026.
“Americans have worked a lifetime to earn the Social Security and Medicare they rely on, and should feel confident that those benefits will be there for them.
“The best way to strengthen Social Security is to lift the cap on earnings subject to the 6.2% payroll tax, which is currently $142,800. If we remove this cap on contributions by the wealthiest Americans, we can expand Social Security benefits and strengthen this earned benefits program for the future.
“Regarding Medicare, Congress and the Centers for Medicare and Medicaid Services should do more to ensure that insurance corporations offering Medicare Advantage plans get their costs under control. These wealthy corporations made commitments to deliver health care services at a lower cost per beneficiary than traditional Medicare. Their failure to do so cost the Medicare Trust Fund $7 billion in 2018 alone.
“The Trustees also noted that Medicare Part D prescription drug costs continue to increase faster than the rate of inflation. Americans pay the highest prices in the world and Congress must act now to lower those costs. Medicare must be allowed to negotiate lower prices for consumers and taxpayers.
“It’s critical to strengthen Medicare and Social Security without breaking the sacred promise made to current and future retirees. The TRUST Act, S. 1295 and H.R. 2575, introduced by Sen. Mitt Romney (UT) and Rep. Mike Gallagher (WI), which some in Congress have suggested incorporating into legislation to raise the debt ceiling, paves the way for cuts to both of these earned benefit programs.
“Congress must not hide behind special committees meeting behind closed doors to determine the future of the benefits retirees have earned without public input. Any changes to the benefits Americans have earned through a lifetime of hard work should be discussed and debated in the light of day so the public knows where their representative and senators stand.”
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Contact: David Blank, dblank@retiredamericans.org
